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They provided many ideas for improving the services, standard of living and strength of our province. Unfortunately, there were far fewer ideas on where we could spend less. Clearly, we cannot do everything all at once. British Columbia’s economy is strong but a softening U.S. economy and volatile commodity prices require continued prudence as we build Budget 2007. We will need to make important choices about investing in programs and services, keeping taxes competitive, and building infrastructure to meet the needs of a growing province. The Minister of Finance Update will help keep you informed on these choices and developments. And I hope that you will forward this publication to others who share your interest in these important issues.
Economy Remains Strong but Expected to Ease in 2007 British Columbia 's economic strengths, continued demand for skilled labour, and the status of the U.S. economy were the main topics of discussion at the annual Economic Forecast Council meeting. The group of independent economic forecasters improved their 2006 and 2007 average growth forecasts for British Columbia. The council expects B.C.’s real gross domestic product to increase 4.0 per cent this year, up from their previous forecast of 3.6 per cent. For 2007, economic growth is expected to average 3.4 per cent, up from 3.2 in their previous survey. Over the medium term, economic growth is forecast at 3.3 per cent for 2008, and 3.2 per cent for years 2009-2011.
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2006/07 Fiscal Results Remain Strong |
BC Economic Forecast Council Summary of Real GDP Forecasts: |
The Second Quarterly Report for 2006/07 shows stronger tax assessments from 2005 and one-time federal transfers are pushing British Columbia’s forecast surplus to $2.15 billion, despite continued caution on commodity prices and the slowing U.S. economy. The revenue forecast is $1,044 million higher than the First Quarterly Report forecast, including an additional $725 million due to stronger 2005 tax assessment reports from the Canada Revenue Agency and one-time federal trust funds for capital projects. The federal trust funds were only recently finalized, as they were contingent on the size of the 2005/06 federal surplus. The spending forecast is up $94 million from the First Quarterly Report, in part reflecting projected deficits by health authorities and hospital societies. Taxpayer-supported debt is projected to decline to $26.3 billion by the end of the 2006/07 fiscal year, and the taxpayer-supported debt-to-GDP ratio, a key measure of debt affordability, is projected to fall to 14.7 per cent. More on Second Quarterly Report
B.C. Earns Top Credit Rating Moody’s Investors Service has improved British Columbia’s credit rating to Aaa, the highest possible rating. Moody’s cited British Columbia’s regulatory reforms, tax reductions, prudent forecasts and disciplined approach. |
Proposed new tax credits will support trades training and completion rates to help meet B.C.’s strong demand for skilled workers. The new tax credits will also encourage apprenticeships for First Nations individuals and persons with disabilities. Subject to legislative approval, the BC Training Tax Credit Program will offer tax credits to individuals and employers based on the type of apprenticeship program and the level of training completed. More on Training Tax Credit Program
Record Participation in Budget Consultations This year's public consultations for Budget 2007 attracted more than 8,300 unique submissions, a record for a parliamentary committee in B.C. The Select Standing Committee on Finance and Government Services held 15 public hearings and invited responses to a questionnaire that was delivered to more than 1.5 million households. I was pleased to be able to personally tour several communities this fall, prior to the Committee's arrival, to speak to local residents about their priorities for Budget 2007.
Carole Taylor visits the Prince Rupert Port, October 2006 |
Our health care system is rapidly expanding and increasingly challenged to keep pace with our growing demands for services. Everyone has an opinion on how to improve the system, and the Conversation on Health is an opportunity for you to provide your views. You can join the conversation several ways: at a regional forum, calling a toll free number, writing or emailing government, or contacting your MLA. |
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